Is ERICSSON LM TELEPHONE CO (ERIC) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 121.6% / 30% | 162.3% / 30% | 169.7% / 30% | 0.8% / 5% | ✗ NOT HALAL |
| DJIM | 121.6% / 33% | 162.3% / 33% | 169.7% / 33% | 0.8% / 5% | ✗ NOT HALAL |
| MSCI | 15.6% / 33% | 20.8% / 33% | 21.7% / 33% | 0.8% / 5% | ✓ HALAL |
| S&P | 121.6% / 33% | 162.3% / 33% | 169.7% / 33% | 0.8% / 5% | ✗ NOT HALAL |
| FTSE | 15.6% / 33% | 20.8% / 33% | 21.7% / 50% | 0.8% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 48.1% | |
| Operating Margin | 0.0% | |
| Net Margin | 12.0% | |
| Return on Equity (ROE) | 28.3% | |
| Return on Assets (ROA) | 7.1% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $33.0B |
| Free Cash Flow | $29.2B |
| Total Debt | $40.3B |
| Debt-to-Equity | 36.5 |
| Current Ratio | 1.3 |
| Total Assets | $279.2B |
Price & Trading
| Last Close | $11.44 |
| 50-Day MA | $11.06 |
| 200-Day MA | $9.27 |
| Avg Volume | 9.5M |
| Beta | 0.6 |
|
52-Week Range
$6.64
| |
About ERICSSON LM TELEPHONE CO (ERIC)
Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides mobile connectivity solutions to communications service providers, enterprises, and the public sector in the Americas, Europe, the Middle East, Africa, Northeast Asia, Southeast Asia, Oceania, and India. It operates through Networks; Cloud Software and Services; Enterprise; and Other segments. The Networks segment offers hardware, software, and service offerings for intelligent, reliable and flexible 5G networks. This segment also provides energy-efficient RAN with an AI-native software architecture deployable on Ericsson silicon and third-party CPUs/GPUs; transport networks; and active/ passive antennas, as well as deployment and lifecycle management services. The Cloud Software and Services segment provides core networks, network management, business and operations support systems, and network operations delivered as managed services, including secure data and voice connectivity, service monetization and orchestration tools, and network management services. The Enterprise segment offers intelligent networking and advanced communications software solutions comprising global communications platform, wireless wide area networks (WWAN), and private 5G networks. The Other segment includes RedBee Media that prepares and distributes live and on-demand video services for broadcasters, sports leagues, and communications service providers. The company was formerly known as Allmanna Telefon AB LM Ericsson and changed its name to Telefonaktiebolaget LM Ericsson (publ) in January 1926. Telefonaktiebolaget LM Ericsson (publ) was founded in 1876 and is headquartered in Stockholm, Sweden.
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Frequently Asked Questions
Is ERICSSON LM TELEPHONE CO (ERIC) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), ERICSSON LM TELEPHONE CO is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is ERICSSON LM TELEPHONE CO's debt ratio?
ERICSSON LM TELEPHONE CO's debt ratio is 121.6% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 15.6%.
What are ERICSSON LM TELEPHONE CO's key financial metrics?
ERICSSON LM TELEPHONE CO has a market capitalization of $37.5B, trailing P/E ratio of 12.2, and revenue of $236.7B. The company maintains a gross margin of 48.1% and a net margin of 12.0%. Return on equity stands at 28.3%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.